Table 3

Diagnostic testing

Diagnostic testNull hyp.F-test (prob)Result
Normality testJarque-BeraH0: Residuals are normally distributed0.8871 (0.642)Normal distribution
Serial correlation LM testBreusch-GodfreyH0: No Serial Correlation0.7985 (0.493)No serial correlation
Heteroskedasticity testARCHH0: No Heteroskedasticity1.0021 (0.346)Homoscedasticity
Breusch-Pagan-Godfrey0.0689 (0.934)
Functional formRamsey RESET TestH0: Functional Form is Correct3.2828 (0.113)Correct functional form
Source(s): Authors’ compilation

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